Financial Resources and Mechanism

This section will provide a brief overview of the financial resources and the financial mechanism of the BBNJ Treaty.

Is there an overall consideration for the Parties' in providing funding pursuant to the BBNJ Treaty?

Yes. Each Party must, "provide, within its capabilities, resources in respect of those activities that are intended to achieve the objectives of this Agreement, taking into account its national policies, priorities, plans and programmes."

Ref. BBNJ Treaty Art. 52.1

How will the new institutions established under the BBNJ Treaty be funded?

The institutions established under the Treaty will be funded through assessed contributions of the Parties.

Ref. BBNJ Treaty Art. 52.2

For information about the institutional arrangements, visit the page here. 

What is the BBNJ Treaty's financial mechanism?

The BBNJ Treaty established a financial mechanism that will provide "adequate, accessible, new and additional and predictable financial resources," which will function under the authority of, where appropriate, and guidance of, and be accountable to the Conference of the Parties (COP).  The mechanism will assist developing States Parties in implementing the obligations of the Treaty, including through funding to support capacity building and the transfer of marine technology as well as to perform other functions for the conservation and sustainable use of marine biological diversity. The COP will consider the reports and recommendations of the finance committee (see the next question and answer below) and take appropriate action. Further, the COP will conduct a periodic review to assess the adequacy, effectiveness, and accessibility of financial resources.

The financial mechanism will have the following funds:

  • Voluntary trust fund established by the COP
  • Special fund that will be funded through monetary benefit sharing of marine genetic resources of areas beyond national jurisdiction (ABNJ) and additional voluntary contributions from Parties and private entities that wish to fund conservation and sustainable use of BBNJ
  • The Global Environment Facility trust fund

The above funds will provide financial resources for different types of activities:

  • The voluntary trust fund will facilitate the participation of representatives of developing States Parties in the meetings of the bodies
  • The special fund and the Global Environment Facility trust fund will be used to fund:
    • capacity-building projects under the Treaty
    • assist developing States Parties to implement the Treaty
    • support conservation and sustainable use programme by Indigenous Peoples and local communities as holders of traditional knowledge
    • undertake any other activities as decided by the COP.

A visual chart of the three funds and the uses thereof.

The financial resources to support the implementation of the BBNJ Treaty may be mobilized from a wide range of sources, influding public and private sources. 

Access to the funds will be open to develping states Parties on the basis of need. Funding under the special fund will be distributed according to equitable sharing criteria. The special fund will aim to ensure efficient access to funding through simplified application and approval procedures and "enhanced readiness of support" for the developing States Parties.

Ref. BBNJ Treaty Art. 52.1, 52.3 through 52.14 through 52.16.

For information on the COP, visit the page here. For information about monetary benefit sharing associated with marine genetic resources of ABNJ, visit the page here.

What is the BBNJ Treaty's finance committee?

The Conference of the Parties (COP) will establish a finance committee on financial resources pursuant to the BBNJ Treaty. The committee will periodically report and make recommendations on the identification and mobilization of funds under the financial mechanism. It will also collect information and report on funding under other mechanisms and instruments contributing directly or indirectly to the achievement of the objectives of the BBNJ Treaty.

The financial committee will also consider the following:

  • ​​​​the assessment of the needs of the Parties, in particular developing States Parties;
  • the availability and timely disbursement of funds;
  • the transparency of decision-making and management processes concerning fundraising and allocations; and
  • the accountability of the recipient developing States Parties with respect to the agreed use of funds.

The specific terms of reference and the modalitis for the opereation of the committee will be decided by the COP. 

Ref. BBNJ Treaty Art. 52.14

For information on the COP, visit the page here.

 

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